Ratings On 12 Classes From COMM 2013-CCRE9 Mortgage Trust Affirmed

  • We affirmed our ratings on 12 classes from COMM 2013-CCRE9 Mortgage Trust, a U.S. CMBS transaction.
  • The affirmations reflect our analysis of the transaction, which included a review of the credit characteristics and performance of the remaining loans in the pool, the transaction's structure, and the liquidity available to the trust.
CENTENNIAL (S&P Global Ratings) Feb. 4, 2019--S&P Global Ratings today 
affirmed its ratings on 12 classes of commercial mortgage pass-through 
certificates from COMM 2013-CCRE9 Mortgage Trust, a U.S. commercial 
mortgage-backed securities (CMBS) transaction (see list).

For the affirmations, the credit enhancement levels are in line with the 
affirmed ratings.

While available credit enhancement levels suggest positive rating movements on 
class B, C, D, and E, our analysis also considered the magnitude of loans that 
are secured by retail properties (27 loans; $434.2 million, 39.3%).

We affirmed our 'AAA (sf)' rating on the class X-A interest-only (IO) 
certificate based on our criteria for rating IO securities, in which the 
ratings on the IO securities would not be higher than that of the lowest rated 
reference class. The notional balance of class X-A references classes A-1, 
A-2, A-SB, A-3, A-3FL regular interest, A-4, and A-M. 

TRANSACTION SUMMARY
As of the Jan. 11, 2019, trustee remittance report, the collateral pool 
balance was $1.10 billion, which is 85.3% of the pool balance at issuance. The 
pool currently includes 72 loans, down from 80 loans at issuance. Two of these 
loans ($31.6 million, 2.9%) are with the special servicer, eight ($90.7 
million, 8.2%) are defeased, and seven ($73.7 million, 6.7%) are on the master 
servicer's watchlist. Of these loans, we deemed the Cornerstone Marketplace 
loan ($13.3 million, 1.2%) to be credit impaired due its heightened risk of 
default and loss. According to the master servicer, the loan is on the 
watchlist because Office Depot, representing 16.8% of the net rentable area 
had a Dec. 31, 2018, lease expiration and has not provided renewal notice. At 
this time, we estimate a minimal (less than 25%) loss upon the loan's eventual 
resolution. 

We calculated a 1.73x S&P Global Ratings weighted average debt service 
coverage (DSC) and a 81.2% S&P Global Ratings weighted average loan-to-value 
(LTV) ratio using a 7.79% S&P Global Ratings weighted average capitalization 
rate. The DSC, LTV, and capitalization rate calculations exclude the specially 
serviced, credit impaired, and defeased loans. The top 10 nondefeased loans 
have an aggregate outstanding pool trust balance of $541.6 million (49.1%). 
Using adjusted servicer-reported numbers, we calculated an S&P Global Ratings 
weighted average DSC and LTV of 1.85x and 83.5%, respectively, for the top 10 
nondefeased loans.

To date, the transaction has experienced $65,435 in principal losses. We 
expect losses to reach approximately 0.4% of the original pool trust balance 
in the near term, based on losses incurred to date and additional losses we 
expect upon the eventual resolution of the two specially serviced and one 
credit impaired loans.

CREDIT CONSIDERATIONS
As of the Jan. 11, 2019, trustee remittance report, two loans in the pool were 
with the special servicer, Midland Loan Services, details below. 

The Raintree Apartments loan ($25.7 million, 2.3%) has a total reported 
exposure of $25.9 million. The loan is secured by a 504-unit multifamily 
property in Tonawanda, N.Y. The loan, which has a reported late but less than 
one month delinquent payment status, was transferred to the special servicer 
on Dec. 1, 2018, due to imminent default. The reported DSC and occupancy for 
the six months ended June 30, 2018, were 1.37x and 94.0%, respectively. We 
expect a minimal loss upon this loan's eventual resolution.

The Winn Dixie-New Orleans loan ($5.9 million, 0.5%) has a total reported 
exposure of $6.3 million. The loan is secured by a 59,000-sq.-ft. retail 
property, in New Orleans. The loan, which has a reported 90-plus-day 
delinquent payment status, was transferred to the special servicer on Aug. 8, 
2018, due to imminent default. According to the special servicer, the borrower 
has listed the property for sale. We expect a minimal loss upon this loan's 
eventual resolution.

We estimated losses for the specially serviced and credit impaired loans, 
arriving at a weighted-average loss severity of 10.2%.